The Star in Kenya reports that M-Pesa transaction costs could be reduced after bankers secured a court injunction against the Kenya Revenue Authority over taxation of money transfer services.

Safaricom CEO Bob Collymore. (Image: File)

Kenyan telecommunications operator, Safaricom, is maintaining a close eye on developments after the Revenue Authority was prevented by the High Court from charging excise duty on money transfer products managed by financial institutions.

Nzioka Waita, Safaricom Corporate Affairs Director, is quoted by The Star as saying, “”We are of course following this matter very keenly and have sought independent legal and tax advice before taking any action of our own.”

Safaricom is reported to have reviewed its M-Pesa tariffs with effect from February 8 following amendments to the Customs & Excise Duty Act gazetted in February.

Transaction charges for amounts from Sh101 (approximately $1,18) were increased by 10%, with company’s absorbing the tax for remittances lower than Sh100 writes The Star.